Question
Greenwood Inc. has the following information available for the year just ended: Sales on account equaled $300,000. Cash collections from customers on their accounts receivables
Greenwood Inc. has the following information available for the year just ended:
Sales on account equaled $300,000.
Cash collections from customers on their accounts receivables equaled $220,000.
Sales discounts taken by customers when paying on their account equaled $3,000. (The company uses the gross method of accounting for discounts).
Sales returns and allowances equaled $4,000. (Assume the customer still owed on their account before the return or allowance).
Customer accounts specifically written off for being uncollectible equaled $7,000.
QUESTION: What were "net credit sales" for the year just ended? Assume the company does not estimate its sales returns and allowances.
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